Risk-free real estate secrets that guarantee income for your retirement

As you get closer to retirement, several fears often begin to pop into your mind.

1. What will I do when I retire?

2. What will my lifestyle be like?

3. Can I afford to retire?

If those questions plague you as you prepare to retire, know that you’re not alone. I talk to people all the time who are contemplating retirement without knowing the answers to these questions.

As an investment advisor, I am often able to help people formulate strategies to invest what they have today, so they have a safe and secure tomorrow.

I specialize in a different type of asset. In fact, most people don’t really think of it as a retirement solution.

Let me give you an example. Let’s say he had $500,000 in his IRA. Since he is most likely invested in the stock market, the IRA could be worth $500,000 today and $10,000 tomorrow. “Impossible,” you say.

Would you put your retirement money in a slot machine?

I know a man who worked for a Fortune 1000 company. He had invested his IRA in that same company. About five years ago, his IRA was worth about $400,000. When he recently prepared to withdraw, that same IRA was now worth $12,000.

It’s a shame it happened to that man, but what about you and your retirement? Do you have your money tied up in assets that fluctuate and do no better than gambling in a casino?

My specialty is Real Estate, specifically cash flow commercial real estate. I know what you’re thinking: “Real estate is a risky business.” It can be, but not always.

Leasing NNN = Turnkey investment

I want to introduce you to a simple solution called triple net leasing or NNN leasing. This type of real estate investment product has been around for years. They are commercial properties backed by corporate leases from the likes of Walgreens, CVS and Burger King.

Here’s how they work: Suppose a national drugstore chain has built a building for one of its stores. Instead of keeping all of their cash in the building, they complete what is called a “lease sale.” Essentially, they will sell the building to an investor and then “lease” the property from the investor. The pharmacy chain will then guarantee the lease, usually for twenty-five years.

What makes this lease even better is that the pharmacy chain will pay for property taxes, insurance, and all maintenance on the property. So, each month, all you get is a check in the mail to pay your debt service (unless you paid cash).

Imagine how powerful this strategy could be for your retirement.

Another great point about these types of investments is that you can usually get a non-recourse loan on the property. A non-recourse loan is backed by the credit of the tenant, not the investor. Therefore, title is held in an LLC that is owned by the investor, but not personally guaranteed.

Now, to make this investment even better, let’s say you plan to retire in about ten years. If you have an investment adviser who can negotiate the purchase price down, then you can get a loan that pays off over ten years. Even though your cash flow will be minimal for the next ten years, your loan will be paid off in full.

You own the building free and clear!

Imagine waking up in ten years and now owning a free and clean $4 million dollar building. Of course, he now has cash flows of about $300,000 per year that he can live on or reinvest. Plus, he has $4 million in building equity that he could sell or keep.

This strategy is just one of many that investors use to secure their future. It’s really not that complicated, but I recommend that you hire a professional investment advisor who can help you with the acquisition and negotiation of the building, as well as the financing to obtain it.